Meeting of the Board of Regents - May 14, 2020 Waco, Texas - Texas State Technical ...
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Meeting of the Board of Regents May 14, 2020 Waco, Texas
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TSTC Board of Regents Meeting(s)
Connally Meeting & Conference Center, Waco, TX and Teleconference
Thursday, May 14, 2020
When What Where Dress Who
Business Casual
1:00 p.m. – 1:30 p.m. Audit Committee Meeting Board Room, Teleconference Limited Regents & Leadership Team
Face Coverings
Business Casual
1:30 p.m. – 2:00 p.m. The Board of Regents Closed Session Board Room, Teleconference Limited Regents & Leadership Team
Face Coverings
Business Casual
2:00 p.m. The Board of Regents Meeting Board Room, Teleconference Limited Regents & Leadership Team
Face Coverings
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Please note: Meetings are scheduled to follow each other consecutively and may start earlier or later than the posted time depending on the length of the discussions and the reports of preceding meetings.
The estimated times are approximate and may be adjusted as required with no prior notice.
TEXAS STATE TECHNICAL COLLEGE
Meeting of the
Board of Regents
Texas State Technical College
Connally Meeting & Conference Center
1651 E. Crest Drive
Waco, TX 76705
Teleconference
Dial In: +1-415-655-0003 US Toll
Access Code: 191 857 676#
Thursday, May 14, 2020
1:30 p.m.
AGENDA
I. CLOSED MEETING
1. The Closed Meeting is called to Order and a Quorum is determined.
2. Consultation with Attorney (Texas Government Code, Section 551.071)
Texas Government Code, Section 551.071: “A governmental body may not conduct
a private consultation with its attorney except:
(a) When the governmental body seeks the advice of its attorney about:
(A) pending or contemplated litigation; or
(B) a settlement offer; or
(b) On a matter in which the duty of the attorney to the governmental body
under the Texas Disciplinary Rules of Professional Conduct of the State
Bar of Texas clearly conflicts with this chapter.”
1. Ted Donovan v. TSTC
2. John Clark Owen v. TSTC
Please note: Meetings are scheduled to follow each other consecutively and may start earlier or later than the posted time depending on the length of the
discussions and the reports of preceding meetings. The estimated times are approximate and may be adjusted as required with no prior notice.
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3. Deliberation Regarding Real Property (Texas Government Code, Section
551.072)
Texas Government Code, Section 551.072: “A governmental body may conduct a
closed meeting to deliberate the purchase, exchange, lease, or value of real
property if deliberation in an open meeting would have a detrimental effect on
the position of the governmental body in negotiations with a third person.”
1. Potential Real Estate Acquisitions
4. Personnel Matters (Texas Government Code, Section 551.074)
Texas Government Code, Section 551.074
“(a) This chapter does not require a governmental body to conduct
an open meeting:
(1) to deliberate the appointment, employment, evaluation,
reassignment, duties, discipline, or dismissal of a public
officer or employee; or
(2) to hear a complaint or charge against an officer or employee.
(b) Subsection (a) does not apply if the officer or employee who is
the subject of the deliberation or hearing requests a public
hearing.”
5. Adjourn
II. MEETING CALLED TO ORDER and TELECONFERENCE LINE OPENED
III. INVOCATION
IV. DETERMINATION OF QUORUM
V. ADOPTION OF AGENDA
VI. APPROVAL OF MINUTES OF FEBRUARY 5 AND 6, 2020 MEETINGS
VII. APPROVAL OF MINUTES OF APRIL 9, 2020 EXECUTIVE COMMITTEE MEETING
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VIII. RECOGNITION OF GUESTS
IX. PUBLIC COMMENTS
X. CHANCELLOR COMMENTS
XI. COMMITTEE REPORTS & MINUTE ORDERS
a. Committee for Student Learning and Student Development
Tiffany Tremont, Chair; Kathy Powell, Member
Committee Chair Comments
Minute Orders:
None.
Reports:
None.
b. Committee for Fiscal Affairs
Alex Meade, Chair; Kathy Powell, Member
Committee Chair Comments
Minute Orders:
Proposed MO#
15-20(c) Approve Lease of Property and Facility to Educator’s Credit Union,
Inc., on the Campus at Texas State Technical College in Waco ......... 26
Jonathan Hoekstra
16-20(c) Approve Lease of Hangar Space to Sav Aviation LLC at Texas State
Technical College in Waco Airport................................................................ 29
Jonathan Hoekstra
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17-20(c) Approve Appropriation Transfers for Fiscal Year 2020...................... 32
Jonathan Hoekstra
Reports:
1. Budget Performance Report......................................................................................... 34
Jonathan Hoekstra
2. TSTC Full Time Equivalent (FTE) Reports ............................................................. 36
Jonathan Hoekstra
3. Pledged Collateral Report.............................................................................................. 38
Jonathan Hoekstra
4. Quarterly Investment Report....................................................................................... 39
Jonathan Hoekstra
5. Semi-Annual Debt Management Report.................................................................. 40
Jonathan Hoekstra
c. Committee for Facilities
Keith Honey, Chair; Ron Widup, Member
Committee Chair Comments
Minute Orders:
Proposed MO#
18-20(c) Accept the Project to Install Statewide Monument Signs on Multiple
Texas State Technical College Campuses ................................................... 46
Ray Fried
19-20(c) Approve the Project to Install the Fire Hydrant Loop at Texas State
Technical College in Sweetwater ................................................................... 48
Ray Fried
20-20(c) Accept the Project to Replace the Roof and HVAC Units at Texas
State Technical College in Harlingen ........................................................... 49
Ray Fried
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21-20(c) Accept the Project to Install New Roofs at Texas State Technical
College in Waco ..................................................................................................... 50
Ray Fried
22-20(c) Approve the Project and Budget to Renovate the Industrial
Technology Center (ITC) at Texas State Technical College in Waco
and Delegate Authority to the Chancellor to Enter into and Execute
Contracts for the Project in Excess of One Million Dollars
($1,000,000) ........................................................................................................... 51
Ray Fried
Reports:
1. Major Facility Projects Status Update ..................................................................... 53
Ray Fried
d. Committee for General Administration
Pat McDonald, Chair; Tony Abad, Member
Committee Chair Comments
Minute Orders:
None.
Reports:
None.
XII. CONSENT AGENDA ITEMS
15-20(c) Approve Lease of Property and Facility to Educator’s Credit
Union, Inc., on the Campus at Texas State Technical College in
Waco
16-20(c) Approve Lease of Hangar Space to Sav Aviation LLC at Texas
State Technical College in Waco
17-20(c) Approve Appropriation Transfers for Fiscal Year 2020
918-20(c) Accept the Project to Install Statewide Monument Signs on
Multiple Texas State Technical College Campuses
19-20(c) Approve the Project to Install the Fire Hydrant Loop at Texas
State Technical College in Sweetwater
20-20(c) Accept the Project to Replace the Roof and HVAC Units at Texas
State Technical College in Harlingen
21-20(c) Accept the Project to Install New Roofs at Texas State Technical
College in Waco
22-20(c) Approve the Project and Budget to Renovate the Industrial
Technology Center (ITC) at Texas State Technical College in
Waco and Delegate Authority to the Chancellor to Enter into and
Execute Contracts for the Project in Excess of One Million Dollars
($1,000,000)
XIII. UNFINISHED BUSINESS
XIV. NEW BUSINESS
XV. ACTION ON CLOSED MEETING
XVI. CHANCELLOR COMMENTS
XVII. BOARD COMMENTS
XVIII. ADJOURN
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TABLE OF CONTENTS
Committee for Student Learning and Student Development
Tiffany Tremont, Chair; Kathy Powell, Member
Committee Chair Comments
Minute Orders:
Proposed MO#
None.
Reports:
None.
(c) denotes Consent Agenda Item 24TABLE OF CONTENTS
Committee for Fiscal Affairs
Alex Meade, Chair; Kathy Powell, Member
Committee Chair Comments
Minute Orders:
Proposed MO#
15-20(c) Approve Lease of Property and Facility to Educators Credit Union,
Inc., on the Campus at Texas State Technical College in Waco ...... 26
Jonathan Hoekstra
16-20(c) Approve Lease of Hangar Space to Sav Aviation LLC at Texas State
Technical College in Waco Airport............................................................. 29
Jonathan Hoekstra
17-20(c) Approve Appropriation Transfers for Fiscal Year 2020................... 32
Jonathan Hoekstra
Reports:
1. Budget Performance Report ............................................................................................................... 34
Jonathan Hoekstra
2. TSTC Full Time Equivalent (FTE) Reports.................................................................................... 36
Jonathan Hoekstra
3. Pledged Collateral Report .................................................................................................................... 38
Jonathan Hoekstra
4. Quarterly Investment Report ............................................................................................................. 39
Jonathan Hoekstra
5. Semi-Annual Debt Management Report ........................................................................................ 40
Jonathan Hoekstra
(c) denotes Consent Agenda Item 25Board Meeting Date: May 14, 2020 Proposed Minute Order #: 15-20(c)
Proposed By: Jonathan Hoekstra, Vice Chancellor & Chief Financial Officer
Subject: Approve Lease of Property and Facility to Educator’s Credit Union, Inc., on
the Campus at Texas State Technical College in Waco
Background: Educator’s Credit Union, Inc. currently leases this space on the campus at Texas
State Technical College (TSTC) in Waco. The lease covers 0.919 acres located in
Block 43 of the campus (100 Bolling) and includes a 3,159 square foot bank
facility.
While there is not an imminent need for the property, its location near the
campus entrance and proximity to the state-wide meeting space present unique
opportunities in the near future. Therefore, an additional one-year lease term
at market value was agreed upon. This term will enable Educator’s the
opportunity to secure another location to meet their long-term plans.
Justification: The lease agreement to Educator’s will allow continued use of the facility to
provide financial services to College students and employees while TSTC
markets the property or reconsiders it useful purpose.
Additional This parcel of real estate is not needed for instruction or training at this time.
Information:
Fiscal Implications: The College is to receive $3,159 in monthly payments for a period of one year.
Educator’s is responsible for all maintenance and upkeep costs, along with
related utilities. General liability coverage in the amount of $3 million is also
required to be effectively maintained.
Attestation: The Minute Order is in compliance with all applicable laws and regulations to
the best of my knowledge.
Attachment(s): Location Map
Letter from General Counsel
Recommended “The Texas State Technical College Board of Regents approves the lease to
Minute Order: Educator’s Credit Union, Inc. for 0.919 acres and the attached 3,159 square foot
bank facility located at 100 Bolling on the campus at Texas State Technical
College in Waco, and authorizes the Chancellor, or his designee, to execute the
lease agreement.”
Recommended By: [ORIGINAL SIGNED BY]
Jonathan Hoekstra, Vice Chancellor & Chief Financial Officer
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EXHIBIT AOFFICE OF GENERAL COUNSEL
3801 Campus Drive
Waco, Texas 76705
254-867-3972
April 17, 2020
Mr. Michael L. Reeser
Chancellor & CEO
Texas State Technical College
3801 Campus Drive
Waco, Texas 76705
Re: Approve Lease of Property and Facility to Educator’s Credit Union, Inc., on the Campus at
Texas State Technical College in Waco
As requested, I have considered the legal ramifications of extending the current Lease Agreement with
the Educator’s Credit Union, Inc (“Lessee”), for property located on the Texas State Technical College
(“TSTC”) Waco Campus at 100 Bolling Drive, Waco, Texas 76705.
In 1997, TSTC entered into a ground lease agreement with Lessee to facilitate the construction and
operation of a commercial building for the performance of financial services traditionally performed
by credit unions. After the termination of the ground lease agreement in 2017, TSTC and Lessee
entered into a subsequent three year lease agreement which will terminate on May 31, 2020.
Contingent upon approval of the Board of Regents, the term of this extension will begin on June 1,
2020, and terminate on May 31, 2021. This term extension would allow Lessee the opportunity to
secure another location to facilitate their long-term plans. During this term extension, TSTC will
receive $3,159 in monthly payments from Lessee, while Lessee will be responsible for all maintenance,
upkeep costs, related utilities and Lessee will carry insurance to protect against damage to property
and harm to persons. The property to be leased is not needed by TSTC for instruction or training at this
time.
Having reviewed the Lease Agreement, it is my opinion that the terms and conditions comport with
state law and TSTC policy. The applicable indemnities and insurance requirements are in place.
Should you have any questions or need additional information, please advise.
Respectfully Submitted,
[ORIGINAL SIGNED BY]
Edward C. Vallejo
Associate General Counsel
cc: Jonathan Hoekstra
Vice Chancellor & Chief Financial Officer
Ray Rushing, J.D.
Vice Chancellor & Chief Legal Officer / General Counsel
28Board Meeting Date: May 14, 2020 Proposed Minute Order #: 16-20(c)
Proposed By: Rick Herrera, Vice Chancellor & Chief Student Services Officer
Subject: Approve Lease of Hangar Space to Sav Aviation LLC at Texas State
Technical College in Waco Airport
Background: Sav Aviation LLC provides dry lease services of aircraft to fulfill personal and/or
commercial travel. Texas State Technical College (TSTC) has partnered with
Sav Aviation LLC to meet statewide travel needs since 2015. Proper use of the
services is tracked and monitored by TSTC in accordance with state travel rules
and each utilization is justified prior to travel. This process is reviewed by the
audit division for compliance and integrity.
Sav Aviation LLC proposes to lease approximately 13,200 square feet of hangar
space within the 8-1 hangar located at 801 Airline Drive at Texas State
Technical College (TSTC) in Waco. The facility was built in 1942 and has never
been used for instructional purposes. The airport FBO (Servion) presently
leases the other half of the hangar for $2,250 a month.
Justification: The lease arrangement will assist in meeting statewide travel needs by
providing an alternate cost effective and safe mode of transportation.
Additional The negotiated lease will be on a one year term. Lease rates and terms compare
Information: favorably to TxDOT market studies and other current airport leases. At lease
termination, the facilities will revert to TSTC control, and the hangar will be
leasable at the prevailing market rate.
Fiscal Implications: TSTC will receive four hours of air time a month on one of the noted aircraft,
which equates to approximately $4,400 of value per month. Any unused air
time will accrue up to a period of 12 months, and the College will pay market
rate for any air time in excess of the noted amount.
Attestation: This Minute Order is in compliance with all applicable laws and regulations to
the best of my knowledge.
Attachment(s): Map of Hangar Location
Letter from General Counsel
Recommended “The Texas State Technical College Board of Regents approves the lease of
Minute Order: hangar space to Sav Aviation LLC at Texas State Technical College in Waco
Airport and authorizes the Chancellor, or his designee, to execute the Lease
Agreement with Sav Aviation LLC”
Recommended By: [ORIGINAL SIGNED BY]
Jonathan Hoekstra, Vice Chancellor & Chief Financial Officer
29A B C D E F G
For help, contact:
2417 Campus Police: 254-867-3690
P3 Campus Information: 254-799-3611
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AIRLINE DR.
MAIN CPL
ENTRANCE ITC P4 WACO CAMPUS
3801 Campus Drive, Waco, TX 76705
ARL
CA 254-799-3611
HLS STB
M FC1
35 PU ACR ACT Hangar IME F-2
S TCC Air Conditioning & Refrigeration Technology ACT E-4
. R . Airport 1 G-3
P1 DR
P5 HLL 2
DR . NGD TSTC WACO Airport Control Tower TWR G-4
EST JBC LLI PGC IME AIRPORT Airport Emergency Fire & Rescue 8-1 G-4
CR BO BCT Airport Shop APS G-3
MRI P7 Auto Collision Repair II ACR E-2
P6
.
P2 7 8 Auto Refinishing Lab ARL E-2
ST
TSC
T
CTL AMH Aviation Maintenance Hangar AMH F-3
1S
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LAV EEO Building Construction Technology BCT F-2
ST
Campus Administration ITC D-1
H
P30 P8 Central Receiving Storage S37 E-7
4T
EEC OPL
P9 1 Challenger Learning Center TEL G-4
.
KAC Chiller Plant CPL D-1
ST
1
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8 ASC 3 City of Waco Fire Station No. 3 2 G-4
5T
SSC RDC Col. James T. Connally Aerospace Center ASC G-3
P29 Computerized Tomography Lab CTL E-2
P11
P10 Connally Meeting & Conference Center JBC C-2
. APS Dental Assistant Technology DNT G-3
4 ST DNT Diesel Equipment Technology BAT F-5
R.
H Dr. Roy Dugger Center RDC F-3
CI
6T P12
T
Electrical Lineworker Technology GM1 F-5
OT
P28 P26 Electronics Center / IDEAS Center EEC E-3
P13
SC
SAA Electronics Office / Learning Resource Center EEO E-3
HRS 7TH ST. EOAC Head Start Program GL3 F-7
12 P27 P25 ATC Fentress Center FC1 D-2
6 SRC 4 Governance & Regulation CHA E-4
AM1 TEL Greta W. Watson Culinary Arts Center CUL E-5
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P24 FIN
CHA 8-1 Grounds Maintenance GL1 F-7
AVEN
BOLLING DR.
Hangar 8-1 8TH ST. Industrial Technology Center ITC D-1
P23 John B. Connally Technology Center JBC C-2
UE D
RVT P14 TWR Kultgen Automotive Center KAC D-3
3 10 ACT
CUL L3Harris Technologies OPL G-3
P22 L3Harris Technologies Hangar AER G-5
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Laser Electro-Optics HLL E-2
BAT Laser Electro-Optics Storage HLS F-2
P21 MRI Lab MRI E-2
Lorem ipsum AER Murray Watson Jr. Student Rec. Center SRC D-4
PHO 5 Office of the Chancellor JBC C-2
13 10TH ST. Patterson Hall PHO F-5
GM1 Payroll Services CHA E-4
P20
WRC Physical Plant PPL F-6
Physical Plant Storage Building GL2 F-7
CARSWELL ST. Provence Graphic Communications Center PGC E-2
Public Substation/WIC 3 D-3
P19 DPS P15
Rosemary Henderson Env. Training Center 5 E-6
Solar Technology Building STB F-2
Statewide Administration JBC C-2
Storage FIN E-4
Storage RVT G-4
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6 P16 6 Student Services Center SSC E-3
System Administration Annex SAA F-4
E RD
BARKSDALE
6 P18 Technical Studies Center TSC E-2
PERRIN ST.
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Transportation Technologies Center TCC E-2
CAMPUS DR.
BAS
PPL
GREENWAY DR.
AVE.
5 TSTC Human Resources CHA E-4
6 TSTC Police Department DPS G-6
AIR
S37
TSTC System Annex HRS E-4
Student Housing
BOLLING DR. Lavaca Hall LAV E-3
Red River Apartments 4 D-3
AIRLINE DR.
GL2
Student Family Housing 6
P17
7 Village Oaks Apartments 8 D-2
Village Oaks Apartments Clubhouse/Office 7 C-2
GL3 Recreation Areas
TSTC Soccer Field 10 D-5
GL1 TSTC Softball Fields 11 E-4
ST. TSTC Tennis/Outdoor Basketball Courts 12 D-4
15TH
TSTC Walking Track 13 E-5OFFICE OF GENERAL COUNSEL
3801 Campus Drive
Waco, Texas 76705
April 17, 2020 254-867-3972
Mr. Michael L. Reeser
Chancellor & CEO
Texas State Technical College System
3801 Campus Drive
Waco, Texas 76705
Re: Lease of Hangar Space at the TSTC Waco Airport to Sav Aviation LLC
As requested, I have reviewed and considered the legal ramifications of the leasing of hangar space at the
TSTC Waco Airport to Sav Aviation LLC.
Sav Aviation LLC provides dry lease services of aircraft to fulfill personal and/or commercial travel. The
College has engaged the services of Sav Aviation LLC, to assist in meeting TSTC’s state-wide travel
needs since 2015. Sav Aviation LLC proposes to lease approximately 13,200 s.f. of hangar space within
the 8-1 hangar located at 801 Airline Drive. TSTC will receive four hours of airtime a month, which
equates to approximately $4,400 of value per month. Any unused airtime will accrue up to a period of 12
months, and TSTC will pay market rate for any airtime in excess of the noted amount. Pilot and fuel
costs are assumed by the TSTC. This lease arrangement will assist TSTC in meeting state-wide travel
needs, and provide same in a more convenient and safer manner than other forms of available commercial
travel. The Term of the lease will be one (1) year, with two single year options to renew. At lease
termination, the facilities will revert to TSTC ownership, and the hangar will be leasable at the prevailing
market rate.
The noted space to be leased at the TSTC Waco Airport is not needed, nor anticipated to be needed in the
foreseeable future, by TSTC for instruction or training.
Having reviewed the lease it is my opinion that the terms and conditions comport with state law and
TSTC policy. The applicable indemnities and insurance requirements are in place.
Should you have any questions or need additional information, please advise.
Respectfully Submitted,
[ORIGINAL SIGNED BY]
Edward C. Vallejo
Associate General Counsel
cc: Rick Herrera
Vice Chancellor & Chief Student Services Officer
Jonathan Hoekstra
Vice Chancellor & Chief Financial Officer
Ray Rushing, J.D.
Vice Chancellor & Chief Legal Officer / General Counsel
31Board Meeting Date: May 14, 2020 Proposed Minute Order #: 17-20(c)
Proposed By: Jonathan Hoekstra, Vice Chancellor & Chief Financial Officer
Subject: Approve Appropriation Transfers for Fiscal Year 2020
Background: Appropriations are originally allocated to the college in a manner influenced by
legacy structures that pre-date the merger of Texas State Technical College
(TSTC) to a single, statewide college. However, the Texas General
Appropriations Act allows the Board of Regents to approve the transfer of
appropriated funds across the statewide college in support of operational
changes and realities.
Justification: Operational needs and related budgets commonly vary from the funding
patterns established during the appropriations process in response to
environmental, operational, and unforeseen needs.
Additional Generally, re-allocations of the original legacy structure occur as administrative
Information: redundancies are reduced or eliminated and as resources serve a statewide, or
enterprise purpose in the current structure.
Fiscal Implications: Funds are allocated to the entity from which they will be expended.
Attestation: This Minute Order is in compliance with all applicable laws and regulations to
the best of my knowledge.
Attachment(s): None.
Recommended “The Texas State Technical College Board of Regents approves the following
Minute Order: appropriation transfers for Fiscal Year 2020:
1) Reallocation of Instruction & Administration, and General Revenue
Appropriations to support operations:
To TSTC System Administration $ 5,977,224
To TSTC Marshall $ 139,280
From TSTC Waco (EWCHEC) $ 1,530,131
From TSTC Waco $ 2,671,995
From TSTC North Texas $ 108,065
From TSTC Fort Bend $ 69,804
From TSTC West Texas $ 1,146,523
From TSTC Harlingen $ 589,986”
32Recommended By: [ORIGINAL SIGNED BY]
Jonathan Hoekstra, Vice Chancellor & Chief Financial Officer
33Texas State Technical College ● Operating Budget Performance ● February 29, 2020
*as of 4/21/20
FY 2020 FY2020 $ % FY 20 Approved FY 20
YTD Budget YTD actual Variance Variance NOTE Budget YE Forecast* Variance
Operating Revenues
State Appropriations & HEAF 113,766,006 114,257,069 491,063 0.4% 1 125,567,676 121,666,288 (3,901,388)
Tuition 37,352,405 35,306,733 -2,045,672 -5.5% 2 47,281,046 40,000,000 (7,281,046)
Student Financial Assistance 24,893,175 23,176,713 -1,716,462 -6.9% 3 33,190,901 30,232,264 (2,958,637)
Auxiliary Enterprises 7,080,825 7,405,315 324,490 4.6% 4 12,349,341 9,604,206 (2,745,135)
Grants 2,327,044 1,815,646 -511,398 -22.0% 5 5,194,295 4,048,304 (1,145,991)
Fees & Educational Sales 2,309,347 2,442,201 132,854 5.8% 5 4,336,150 3,518,127 (818,023)
Industry Relations / Other 3,313,450 2,321,214 -992,236 -29.9% 5 7,790,682 6,470,524 (1,320,158)
CARES Act - Insitutional Portion - - - 6 - 4,982,578 4,982,578
Total Operating Revenues 191,042,252 186,724,891 -4,317,361 -2.3% 235,710,091 220,522,291 (15,187,800)
Operating Carryforward / Reserves 4,310,000 4,310,000 4,310,000 4,310,000 -
Operating Expenditures
Instruction 34,953,176 34,172,093 -781,083 -2.2% 7 75,435,486 72,104,480 (3,331,006)
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Student Financial Aid 19,194,076 17,632,841 -1,561,235 -8.1% 3 39,687,490 38,158,862 (1,528,628)
Finance 5,098,005 4,850,405 -247,600 -4.9% 10,977,816 10,527,510 (450,306)
Advancement & Communications 2,715,575 2,392,564 -323,011 -11.9% 7,085,881 6,648,220 (437,661)
Auxiliary Services 5,294,601 5,306,772 12,171 0.2% 10,954,519 10,451,721 (502,798)
Facilities 4,655,084 4,614,722 -40,362 -0.9% 8 10,579,737 9,224,039 (1,355,698)
Facilities - Transfer to Capital 3,690,836 3,690,836 - 0.0% 3,690,836 3,690,836 -
Enrollment Management 4,799,147 4,341,386 -457,761 -9.5% 11,147,948 9,639,793 (1,508,155)
Information Technology 6,766,003 5,218,370 -1,547,633 -22.9% 10,140,165 9,342,903 (797,262)
Statewide Administration 2,870,480 2,771,469 -99,011 -3.4% 5,982,398 5,756,607 (225,791)
Statewide Benefits 14,573,909 15,063,837 489,928 3.4% 9 29,742,672 32,109,384 2,366,712
Debt Service & Leases 5,482,635 5,924,013 441,378 8.1% 12,011,364 12,771,700 760,336
Utilities & Other 3,412,701 2,731,252 -681,449 -20.0% 7,583,779 6,561,343 (1,022,436)
Strategic Pool (to be allocated) 878,498 878,498 - 0.0% 10 5,000,000 - (5,000,000)
Total Operating Expenditures 114,384,726 109,589,058 -4,795,668 -4.2% 240,020,091 226,987,398 (13,032,693)
Operating Budget Margin (Deficit) 80,967,526 81,445,833 478,307 0.6% - (2,155,107) (2,155,107)Texas State Technical College ● Operating Budget Performance ● February 29, 2020
Notes:
Explanations are provided below for any notable variances from the orignal budget.
1) State appropriation revenue is forecasted to include a 5% reduction in funding.
2) Prior to the COVID-19 disruption, tuition revenue was forecasted to be $3.6 million below budget for the fiscal year, totaling $43.7 million. Given the uncertainty of when the
disruption ends, and best guess placeholder of $40 million is being used.
3) Both forecasts for Student Financial Assistance Revenue and Student Financial Aid Expense have been reduced, to align with the current decrease in forecasted tuition.
4) The Auxiliary Services Revenue forecast has been decreased 25% in Housing, Food Service, and Bookstore due to the COVID-19 disruption.
5) Various other revenue line items such as Grants, Industry Relations, Fees, and Educational Sales have all been adjusted down to reflect the COVID-19 business disruption.
6) In late March, the CARES Act was enacted into law to provide federal financial relief from the COVID-19 shutdown. Higher Education institutions were granted funds based on
prior year financial aid amounts and student counts. TSTC received $9.965 million in grant funds, half of which must be distributed directly to students. The other half, $4.982
million, is institutional aid that can used to offset lost revenue, and cover COVID-19 related costs.
7) Instructional Expenses are forecasted to be below the original budget, mainly due to a $2 million savings on postponing strategic partnership expansions.
8) $1 million for statewide master planning in the Facilities budget has been deferred.
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9) Statewide benefits expenses are higher than originally budgeted due to salary and wage increases awarded in the first half of the current fiscal year.The increased benefits
expense is partially offset by increased state appropriation revenue.
10) TSTC's Strategic Pool, which is primarily used to fund compensation increases, is designed to be allocated among functional departments as expenses are incurred, therefore, no
actual expenses are reflected in this line item. As of February 29, 2020, $2.6 million of the pool had been allocated, leaving $2.4 million to be allocated in the future. Management
has now set aside $2 million of this remainder, to hedge against potential tuition revenue shortfall and other new expenses related to the COVID-19 disruption.TexasSt
ateTechni
calCol
lege
Var
ianceofFTEsbyTit
leCat
egor
ybyCampus
FY2020-FortheQuart
erEndi
ngFebruar
y29,2020
F
FTETi
tleCategory Campus 2016 2017 2018 2019 2020
FTEAdministr
atorsFortBend 0 -0 5 -5 4 -4 4 -4 1 -1
Har
lingen 16 -0 12 -(
4) 5 -(
11) 5 -(
11) 3 -(
13)
Mar
shal
l 6 -0 2 -(
4) 2 -(
4) 1 -(
5) 1 -(
5)
Nor
thTexas 0 -0 2 -2 2 -2 2 -2 1 -1
Syst
em 12 -0 12 -0 10 -(
2) 10 -(
3) 18 -6
Wac
o 20 -0 14 -(
6) 15 -(
5) 11 -(
9) 11 -(
9)
WestTexas 10 -0 8 -(
2) 4 -(
6) 6 -(
4) 3 -(
7)
FTEFac
ult
y For
tBend 0 -0 21 -21 25 -25 26 -26 31 -31
Har
lingen 167 -0 162 -(
5) 166 -(
1) 166 -(
1) 169 -2
Mar
shal
l 63 -0 40 -(
23) 45 -(
19) 37 -(
26) 36 -(
27)
Nor
thTexas 0 -0 16 -16 20 -20 19 -19 21 -21
36
Syst
em 0 -0 0 -0 0 -0 0 -0 0 -0
Wac
o 255 -0 255 -(
1) 243 -(
12) 237 -(
18) 223 -(
32)
WestTexas 76 -0 76 -0 79 -3 89 -13 85 -9
FTEOt
herSt
aff For
tBend 0 -0 26 -26 41 -41 46 -46 51 -51
Har
lingen 376 -0 352 -(
24) 333 -(
43) 329 -(
47) 316 -(
60)
Mar
shal
l 66 -0 51 -(
15) 52 -(
14) 53 -(
13) 52 -(
14)
Nor
thTexas 0 -0 16 -16 21 -21 25 -25 22 -22
Syst
em 34 -0 35 -1 45 -11 43 -9 24 -(
10)
Wac
o 411 -0 405 -(
6) 404 -(
7) 391 -(
20) 424 -13
WestTexas 126 -0 125 -(
1) 126 -(
1) 128 -2 141 -15
2016 2017 2018 2019 2020
FTEAdmi
nist
rat
ors 64 -0 55 -(
9) 42 -(
22) 39 -(
25) 38 -(
26)
Statewide FTEFac
ult
y 561 -0 571 -10 577 -16 574 -13 566 -5
Totals
FTEOt
herSt
aff 1,
013 -0 1,
010 -(
3) 1,
020 -7 1,
014 -1 1,
030 -17
Gr
andTot
al 1,
638 -0 1,
636 -(
2) 1,
639 -1 1,
628 -(
10) 1,
634 -(
4)TexasSt
ateTechni
calCol
lege
Var
ianceofAnnualFTEsbyFundingSour
ce
AsofFebruar
y29,2020
Tot
alFTECount FTETr
end
27
11 11 17
0
Appr
opr
iat
ed Appr
opr
iat
ed
1,
384 1,
395 1,
395 1,
401 1,
411
0 (
12) (
10)
(
27) (
31)
Ot
her
Ot
her
254 242 245 227 223
0 (
2) 1 (
10) (
4)
37
Gr
andTot
al
Gr
andTot
al
Di
f
fer
encei
nFTE
-
150 150 1,
638 1,
636 1,
639 1,
628 1,
634 2016 2017 2018 2019 2020
2016 2017 2018 2019 2020 1TEXAS STATE TECHNICAL COLLEGE
Pledged Collateral Report
February 29, 2020
DEPOSITS SECURITY ON DEPOSITS
Demand Money Market Total FDIC* Required Collateral at Sufficient
Deposits & Time Deposits Deposits Coverage (up to) Collateral Market Value (Insufficient)
Depository - Location
First Ntl Bank of Central Texas - Waco 26,032,661 2,817,653 28,850,314 500,000 28,350,314 42,125,926 13,775,612
Frost Bank - Harlingen/Fort Bend 178,745 - 178,745 250,000 - 911,687 982,942
Texas National Bank - Sweetwater 47,017 - 47,017 250,000 - - 202,983
Texas Bank & Trust - Marshall 45,923 - 45,923 250,000 - - 204,077
Citizens National Bank - Red Oak 17,876 - 17,876 250,000 - - 232,124
Prosperity Bank - Abilene 17,186 - 17,186 250,000 - - 232,814
Texas Bank - Brownwood 15,353 - 15,353 250,000 - - 234,647
38
InterBank - Breckenridge 16,933 - 16,933 250,000 - - 233,067
Bank of America - Waco - 10,000 10,000 250,000 - - 240,000
Compass Bank - Waco - 927,084 927,084 250,000 677,084 750,000 72,916
First Community Bank - San Benito - 172,368 172,368 250,000 - - 77,632
First Ntl Bank - Albany/Breckenridge - 199,215 199,215 250,000 - - 50,785
Veritex Comm. Bank - N. Richland Hills - 10,000 10,000 250,000 - - 240,000
Texas First State Bank - Waco - 703,821 703,821 250,000 453,821 1,007,012 553,191
Cash in State Treasury 9,388,775 - 9,388,775 No Collateral Required
TexasTerm (Government Pool) 17,473,504 - 17,473,504 No Collateral Required
TexPool (Government Pool) 658,834 - 658,834 No Collateral Required
TOTAL 53,892,807 4,840,141 58,732,948
* Federal Deposit Insurance Corp. All demand deposits owned by a public unit held in an insured depository institution within the State in which the public unit is located are
added together and insured up to $250,000. Separately, all time and savings deposits owned by a public unit and held in an insured depository institution within the State in
which the public unit is located are added together and insured up to $250,000. The term "demand deposits" means both interest-bearing and noninterest-bearing deposits.TEXAS STATE TECHNICAL COLLEGE
Quarterly Investment Report
As of February 29, 2020
Beginning Value Ending Value Interest
Description as of 11/30/19 as of 02/29/20 Rate
Operating Funds
Cash in State Treasury 9,211,900 9,388,775 2.00%
Statewide Operating 20,587,064 18,354,122 1.50%
Harlingen - Local Operating 166,216 145,491 1.08%
Waco - Local Operating 65,731 36,773 1.50%
Sweetwater - Local Operating 60,621 47,017 1.65%
Marshall - Local Operating 47,922 45,923 0.10%
Fort Bend - Local Operating 42,079 33,254 0.00%
Brownwood - Local Operating 19,276 15,353 0.55%
System - Local Operating 15,856 15,915 1.50%
Abilene - Local Operating 25,846 17,186 0.20%
North Texas - Local Operating 24,725 17,876 0.25%
Breckenridge - Local Operating 15,727 16,933 0.25%
Payroll 5,666,060 6,042,235 1.50%
Federal Funds 21,160 10 0.00%
FNB Central Texas - MMKT 2,026,461 2,034,050 1.50%
FNB Central Texas - CD 500,825 500,825 2.25%
Compass Bank - CD 921,875 927,084 2.26%
FNB Albany/Breckenridge - CD 100,000 100,000 2.00%
First Community Bank - CD 40,121 40,121 1.60%
First Community Bank - CD 132,247 132,247 2.00%
Texas First State Bank - CD 256,650 258,249 2.50%
Texas First State Bank - CD 250,000 250,000 2.25%
TexasTerm - Pool 12,295,054 17,353,043 1.58%
Total Operating Funds 52,493,416 55,772,482
Endowment Funds
Bank of America - CD 10,000 10,000 0.05%
Compass Bank - CD 195,572 2.36%
FNB Albany/Breckenridge - CD 99,215 99,215 1.75%
FNB Central Texas - MMKT 281,723 282,778 1.50%
Texas First State Bank - CD - 195,572 1.85%
Liberty/Veritex Community Bank - CD 10,000 10,000 2.62%
Total Endowment Funds 596,510 597,565
Bond Proceeds
FNB Central Texas 1,681,721 1,583,606 1.50%
TexasTerm 119,978 120,461 1.58%
TexPool 656,210 658,834 1.59%
Total Bond Proceeds 2,457,909 2,362,901
Total All Investments 55,547,835 58,732,948
39TEXAS STATE TECHNICAL COLLEGE
Quarterly Investment Report
As of February 29, 2020
Schedule of Time Deposits:
Days
Description Amount Maturity Date Maturity Rate Type
Texas First State Bank 258,249 6/27/2020 365 2.50% Operating
Texas First State Bank 250,000 7/25/2020 365 2.25% Operating
Texas First State Bank 195,572 12/5/2020 365 1.85% Endowment
Compass Bank 927,084 4/11/2020 365 2.26% Operating
Bank of America 10,000 8/10/2020 365 0.05% Endowment
First Community Bank 132,247 6/20/2020 276 2.00% Operating
First Community Bank 40,121 6/18/2020 215 1.60% Operating
FNB Central Texas 250,825 5/24/2020 365 2.25% Operating
FNB Central Texas 250,000 8/7/2020 365 2.25% Operating
FNB - Albany/Breckenridge 34,215 4/13/2020 365 1.75% Endowment
FNB - Albany/Breckenridge 100,000 4/13/2020 365 2.00% Operating
FNB - Albany/Breckenridge 65,000 4/5/2020 365 1.75% Endowment
Veritex Community Bank 10,000 9/7/2020 731 2.62% Endowment
Total Time Deposits 2,523,313
Weighted Average Maturity (Time Deposits): 359
Weighted Average Rate of Interest (All Investments): 1.64%
Current One Year Treasury Bill Rate: 0.97%
Lipper Money Market Funds Average Return (1 YR): 1.48%
FY 2020 Interest Received and Accrued (All Investments): $489,467
All investments are shown at cost. Market value equals cost due to the type of investment. All balances are
per the bank as of the report date.
I certify that this investment portfolio is incompliance with Texas State Technical College's policy on
investments and the Public Funds Investment Act (Texas Government Code, Section 2256).
[ORIGINAL SIGNED BY] April 1, 2020
Anju Motwani, Vice President & Controller Date
[ORIGINAL SIGNED BY] April 1, 2020
Jonathan Hoekstra, Chief Financial Officer Date
40FINANCE
OFFICE OF ACCOUNTING & REPORTING
3801 Campus Drive
Waco, Texas 76705
254-867-3934
254-867-4888
March 17, 2020
Mr. John Hatchel
Members of the Board of Regents
Texas State Technical College
Waco, Texas 76705
SUBJECT: Semi-annual Report Certifying Debt Management Policy Compliance
Regents:
As detailed in Texas State Technical College Statewide Operating Standard FA 2.4, Policy for
Debt Management, it is the policy of the College to use debt to finance capital projects needed
to achieve its strategic objectives. The College will ensure that prudent practices are in place to
maintain financial stability, minimize interest costs, and preserve future financial flexibility.
Additionally, a semi-annual report from the Office of Accounting & Reporting is to be provided
to the Board of Regents certifying compliance with the policy.
Accordingly, I hereby certify that the College currently complies with SOS FA 2.4, Policy for Debt
Management, and with all bond covenants. Further, I have verified that current and projected
revenues are sufficient to fund debt service, as of February 29, 2020. Details of outstanding
principal balances, current debt service due, and the sources of debt service funding have been
provided to the Committee for Fiscal Affairs.
If you have any questions or need additional information, please advise.
Respectfully submitted,
[ORIGINAL SIGNED BY] [ORIGINAL SIGNED BY]
Jonathan Hoekstra, MBA, CPA Chad Wooten, CPA
Vice Chancellor & Associate Vice Chancellor
Chief Financial Officer Finance
41Texas State Technical College
Sources of Debt Service Funding for FY 2020
997,358
6% Line-Item / Pledged
Appropriation
Other Discretionary
Funds
6,742,232 Partner Contributions
39%
9,694,377
55%
FY 2020 Debt
Source of Funding
Bonds Service
RFS Series 2008A Bonds, Taxable (Clean Energy) 73,214 other discretionary funds
RFS Series 2009 Bonds (Local Revenue) 1,554,800 other discretionary funds
line-item appropriation (35%)
RFS Series 2011 Bonds (Tuition / Local Revenue) 2,200,331 partner contributions (46%)
other discrectionary funds (19%)
RFS Series 2011A Bonds (Local Revenue) 362,838 other discretionary funds
Constitutional Appropriation Series 2016 Bonds (HEAF) 2,983,350 pledged appropriation
line-item appropriation (77%)
RFS Series 2016 Bonds (Tuition / Local Revenue) 3,857,982
other discretionary funds (23%)
Texas Public Finance Authority Lease Purchases 3,754,262 other discretionary funds
Other Lease Purchases 1,585,572 other discretionary funds
State Energy Conservation Office (SECO) Loans 880,199 other discretionary funds
Governor's Office Loan (Hangar - Waco) 181,419 other discretionary funds
TOTAL: $ 17,433,967
42Texas State Technical College
Summary of Outstanding Debt as of 2/29/20
Outstanding Interest Maturity
Principal Rate Date
Bonds
RFS Series 2008A Bonds, Taxable (Clean Energy) 142,857 1.00% December 2021
RFS Series 2009 Bonds (Local Revenue) 1,495,000 3.00% - 5.00% August 2020
RFS Series 2011 Bonds (Tuition / Local Revenue) 18,360,000 3.75% - 5.00% August 2036
RFS Series 2011A Bonds(Local Revenue) 3,555,000 3.00% - 4.00% August 2031
Constitutional Appropriation Series 2016 Bonds (HEAF) 15,560,000 4.00% - 5.00% October 2025
RFS Series 2016 Bonds (Tuition / Local Revenue) 50,835,000 2.00% - 5.00% October 2035
Total Bonds 89,947,857
Lease Purchases
TSTC Foundation, 2003 (Housing - Marshall) 851,645 3.75% October 2023
TSTC Foundation, 2010 (Warehouse - Harlingen) 85,855 4.08% July 2020
TSTC Foundation, 2018 (ITC - Fort Bend) 4,943,187 3.00% September 2025
TSTC Foundation, 2019 (GMC Yukon) 36,175 4.95% May 2023
TSTC Foundation, 2017 (Ford F-150) 8,115 4.50% January 2021
TSTC Foundation, 2018 (Ford Expedition) 38,006 4.50% March 2022
Dell Financial Services, 2018 (Computer Equipment) 491,704 7.06% September 2022
Texas Public Finance Authority (402 leases) 8,451,254 various various through 2026
Total Lease Purchases 14,905,941
State Energy Conservation Office (SECO) Loans
2010 - Waco 2,441,263 2.00% August 2024
2011 - Harlingen 672,236 3.00% February 2023
Total SECO Loans 3,113,499
Governor's Office Loan (Hangar - Waco) 1,190,000 4.60% January 2030
Total Outstanding Debt: $ 109,157,297
43Total Outstanding Debt as of August 31:
2015 $ 70,517,360
2016 129,785,251
2017 125,791,712
2018 126,189,894
2019 116,149,484
TSTC Bond Ratings as of 2/29/20
TSTC Bond Fitch S&P Moody's Rating Description
Series
2016 HEAF AAA AAA Aaa Prime
AA+ AA+ Aa1
AA AA Aa2 High Grade
Investment Grade
AA- AA- Aa3
2009, 2011 A+ A+ A1
2011A, 2016 A A A2 Upper Medium Grade
RFS bonds A- A- A3
BBB+ BBB+ Baa1
BBB BBB Baa2 Lower Medium Grade
BBB- BBB- Baa3
BB+ BB+ Ba1
Below Investment Grade /
BB BB Ba2
Below Investment Grade (Speculative)
Speculative
BB- BB- Ba3
B+ B+ B1
B B B2 Highly Speculative
B- B- B3
CCC+ CCC+ Caa1
Substantial Risks / Extremely
CCC CCC Caa2
Speculative
CCC- CCC- Caa3
CC CC Ca
Default Imminent
C C
DDD SD C
In Default
DD D
Rating Outlook Summary:
2016 HEAF Bonds: Rated on the credit of the State of Texas, as debt service funds are
appropriated by the state's constitution. Outlook for both Fitch and Moody's is STABLE .
Revenue Financing System (RFS) Bonds: . Moody's and S&P rate all four issuances of RFS bonds;
Fitch rates Series 2016 only. Outlook from all three agencies is STABLE .
44TABLE OF CONTENTS
Committee for Facilities
Keith Honey, Chair; Ron Widup, Member
Committee Chair Comments
Minute Orders:
Proposed MO#
18-20(c) Accept the Project to Install Statewide Monument Signs on
Multiple Texas State Technical College Campuses ............................. 46
Ray Fried
19-20(c) Accept the Project to Install the Fire Hydrant Loop at Texas State
Technical College in Sweetwater ................................................................ 48
Ray Fried
20-20(c) Accept the Project to Replace the Roof and HVAC Units at Texas
State Technical College in Harlingen ........................................................ 49
Ray Fried
21-20(c) Accept the Project to Install New Roofs at Texas State Technical
College in Waco .................................................................................................. 50
Ray Fried
22-20(c) Approve the Project and Budget to Renovate the Industrial
Technology Center (ITC) at Texas State Technical College in Waco
and Delegate Authority to the Chancellor to Enter into and
Execute Contracts for the Project in Excess of One Million Dollars
($1,000,000) ........................................................................................................ 51
Ray Fried
Reports:
1. Major Facility Projects Status Update .................................................................. 53
Ray Fried
(c) denotes Consent Agenda Item 45Board Meeting Date: May 14, 2020 Proposed Minute Order #: 18-20(c)
Proposed By: Rick Herrera, Vice Chancellor & Chief Student Services Officer
Subject: Accept the Project to Install Statewide Monument Signs on Multiple
Texas State Technical College Campuses
Background: Texas State Technical College has become a single college with multiple
campuses. Many of the monument signs and wayfinding on the individual
campuses are out dated and do not reflect the “One TSTC” image. This
Statewide project will update, standardize, and strengthen the Texas State
Technical College Brand.
Justification: Multiple Contractors have completed the construction of statewide
monument signs on the proposed campuses.
Additional The standardized TSTC Monument sign was developed during the design
Information: process for the Fort Bend Industrial Technology Center. Monuments signs
have been constructed on Texas State Technical College Campuses at Fort
Bend, Abilene, Waco, Marshall, Harlingen, North Texas, Sweetwater,
Breckenridge, and Brownwood.
Action Schedule: Approve Project and Budget MO 03-17(c)
Accept Project MO 18-20(c)
Fiscal Implications: Funds available as currently budgeted
Attestation: This Minute Order is in compliance with all applicable laws and regulations to
the best of my knowledge.
Attachment(s): Picture of Monument Sign
Recommended “The Texas State Technical College Board of Regents authorizes the
Minute Order: Chancellor, or designee, to accept the project for the installation of Statewide
Monument Signs on multiple TSTC campuses.”
Recommended By: [ORIGINAL SIGNED BY]
Raymond D. Fried, Associate Vice Chancellor Facilities Planning and
Construction
4647
Board Meeting Date: May 14, 2020 Proposed Minute Order #: 19-20(c)
Proposed By: Rick Herrera, Vice Chancellor & Chief Student Services Officer
Subject: Accept the Project to Install the Fire Hydrant Loop at Texas State
Technical College in Sweetwater
Background: The fire loop on the Sweetwater Campus was not operating adequately to
service the campus and required a full replacement. By MO 15-19(c) The
Board of Regents approved the project and budget to replace the fire loop.
Justification: The project has been completed by the contractor in accordance with the
contract documents.
Additional None.
Information:
Action Schedule: Approve Concept MO 05-19(c)
Approve Project and Budget MO 15-19(c)
Accept Project MO 19-20(c)
Fiscal Implications: Funds available as currently budgeted
Attestation: This Minute Order is in compliance with all applicable laws and regulations to
the best of my knowledge.
Attachment(s): None.
Recommended “The Texas State Technical College Board of Regents authorizes the
Minute Order:: Chancellor, or designee, to accept the project for the installation of the fire
loop at Texas State Technical College in Sweetwater and upon final
completion authorizes the Chancellor, or designee, to make final payment to
the contractor in the full amount."
Recommended By: [ORIGINAL SIGNED BY]
Raymond D. Fried, Associate Vice Chancellor Facilities Planning and
Construction
48Board Meeting Date: May 14, 2020 Proposed Minute Order #: 20-20(c)
Proposed By: Rick Herrera, Vice Chancellor & Chief Student Services Officer
Subject: Accept the Project to Replace the Roof and HVAC Units at Texas State
Technical College in Harlingen
Background: The Student Center building 20SC located on the Harlingen campus was built
in 1991. The existing gravel roof and the fourteen roof top HVAC units have
outlived their respective operational life.
By Minute Order 46-19(c), the Board of Regents approved the project and
budget to replace the roof and HVAC units on Building 20SC.
Justification: The project will be completed by the contractors in accordance with the
contract documents.
Additional None.
Information:
Action Schedule: Approve Project and Budget MO 46-19(c)
Accept Project MO 20-20(c)
Fiscal Implications: Funds available as currently budgeted.
Attestation: This Minute Order is in compliance with all applicable laws and regulations to
the best of my knowledge.
Attachment(s): None.
Recommended “The Texas State Technical College Board of Regents authorizes the
Minute Order: Chancellor, or designee, to accept the project to replace roof and HVAC units
at Texas State Technical College in Harlingen and upon final completion
authorizes the Chancellor, or designee, to make final payment to the
contractors in the full amount."
Recommended By: [ORIGINAL SIGNED BY]
Raymond D. Fried, Associate Vice Chancellor Facilities Planning and
Construction
49Board Meeting Date: May 14, 2020 Proposed Minute Order #: 21-20(c)
Proposed By: Rick Herrera, Vice Chancellor & Chief Student Services Officer
Subject: Accept the Project to Install New Roofs at Texas State Technical College
in Waco
Background: On April 13, 2018, Texas State Technical College (TSTC) in Waco experienced
significant roof damage to the Student Services Center, Kultgen Automotive
Center, and Electronics Building due to wind and hail. By EA 27-19, the Board
of Regents approved the project and budget for the roof replacements.
Justification: The project will be completed by the roofing contractor in accordance with
the contract documents.
Additional None.
Information:
Action Schedule: Approve Project and Budget EA 27-19
Designate Chancellor to Enter into a Contract >$1M EA 28-19
Accept Project MO 21-20(c)
Fiscal Implications: The roof replacement costs will be funded by the insurance proceeds.
Attestation: This Minute Order is in compliance with all applicable laws and regulations to
the best of my knowledge.
Attachment(s): None.
Recommended “The Texas State Technical College Board of Regents authorizes the
Minute Order: Chancellor, or designee, to accept the project for the installation of new roofs
on the Student Services Center, Kultgen Automotive Center and Electronics
Building at Texas State Technical College in Waco and upon final completion
authorizes the Chancellor, or designee, to make final payment to the
contractor in the full amount."
Recommended By: [ORIGINAL SIGNED BY]
Raymond D. Fried, Associate Vice Chancellor Facilities Planning and
Construction
50Board Meeting Date: May 14, 2020 Proposed Minute Order #: 22-20(c)
Proposed By: Rick Herrera, Vice Chancellor & Chief Student Services Officer
Subject: Approve the Project and Budget to Renovate the Industrial Technology
Center (ITC) at Texas State Technical College in Waco and Delegate
Authority to the Chancellor to Enter into and Execute Contracts for the
Project in Excess of One Million Dollars ($1,000,000)
Background: By Minute Order 09-20(c) the Board of Regents approved the concept to
renovate the Industrial Technology Center (ITC) building on the Waco
Campus to house the occupants of the buildings due for demolition and house
administrative functions for the College.
Several of the pre-1965 buildings scheduled for demolition will require the
relocation of the current occupants. After extensive review of various options
for relocation, the renovation of the western portion of the ITC serves as the
most expedient and cost-efficient means to house the displaced staff in
preparation for the planned demolition. This space is currently unoccupied.
Justification: Due to the abatement and demolition of buildings on the Waco campus, the
Industrial Technology Building will undergo renovations to house the
occupants of the buildings due for demolition.
Additional The desired project schedule is for occupancy in the Fall of 2021. The project
Information: budget is $16,300,000.
Action Schedule: Approve Concept MO 09-20(c)
Approval of Project, Budget and Contracts >$1M MO 22-20(c)
Fiscal Implications: Bonds and Appropriations.
Attestation: This Minute Order is in compliance with all applicable laws and regulations to
the best of my knowledge.
Attachment(s): Letter from General Counsel
Recommended “The Texas State Technical College Board of Regents approves the project and
Minute Order: budget to renovate the Industrial Technology Center at Texas State Technical
College in Waco and authorizes the Chancellor, or his designee, to enter into
and execute contracts for the construction of the project in excess of One
Million Dollars ($1,000,000).”
Recommended By: [ORIGINAL SIGNED BY]
Raymond D. Fried, Associate Vice Chancellor Facilities Planning and
Construction
51OFFICE OF GENERAL COUNSEL
3801 Campus Drive
Waco, Texas 76705
April 17, 2020 254-867-3972
Mr. Michael L. Reeser
Chancellor & CEO
Texas State Technical College
3801 Campus Drive
Waco, Texas 76705
Re: Approve the Project and Budget to Renovate the Industrial Technology Center (ITC) at
Texas State Technical College in Waco and Authorize the Chancellor to Enter Into Contracts
for the Construction of the Project and Delegate Authority to the Chancellor to Enter into
and Execute Contracts for the Project in Excess of One Million Dollars ($1,000,000)
As requested, I have reviewed and considered the legal ramifications of approving (1) the project and budget
to renovate the Industrial Technology Center at Texas State Technical College in Waco, and (2) the
delegation of authority from the Texas State Technical College Board of Regents to the Chancellor, or his
designee, to enter into and execute contracts for the construction of the project in excess of One Million
Dollars ($1,000,000).
Generally, Chapter 135 of the Texas Education Code vests the organization and control of Texas State
Technical College (“TSTC”) with the Board of Regents. This would include the ability to approve projects,
and the budget for said projects, to renovate any facilities.
During the 84th Legislative Session comprehensive changes were made to the Texas Government Code.
Generally, the TSTC Board of Regents alone has authority to approve and sign contracts on behalf of TSTC
with a value exceeding One Million Dollars ($1,000,000.00). However, among the changes made to the
Government Code is a provision that allows the TSTC Board of Regents to delegate this approval and
signatory authority to the Chancellor or his designee.
Having reviewed the Texas Education Code and the Government Code, it is my opinion that the approval
of (1) the project and budget to renovate the Industrial Technology Center at Texas State Technical College
in Waco, and (2) the delegation of authority from the Texas State Technical College Board of Regents to
the Chancellor, or his designee, to enter into and execute contracts for the construction of the project in
excess of One Million Dollars ($1,000,000), comports with state law and TSTC policy.
Should you have any questions or need additional information, please advise.
Respectfully Submitted,
[ORIGINAL SIGNED BY]
Edward C. Vallejo
Associate General Counsel
cc: Rick Herrera
Vice Chancellor & Chief Student Services Officer
Ray Rushing, J.D.
Vice Chancellor & Chief Legal Officer / General Counsel
52000000Major Facility Projects Status Update May 2020
Managing %
# Project Name Campus Delivery Method Fund Source Cost Allocation Required Approvals
Campus Complete
TSTC Monument and Statewide Statewide Construction HEAF Bond $ 780,000 Owners reserve $ 280,382 Approve Project and Budget MO 03-17(c)
Wayfinding Project Manager at Risk Abilene $ 46,321 Accept Project MO 18-20(c)
Waco $ 73,790
Marshall $ 49,885
Harlingen $ 119,000
1 50%
Sweetwater $ 91,928
Breckenridge $ 51,544
Brownwood $ 31,791
North Texas $ 35,359
Total Funds $ 780,000 Total Budget $ 780,000
Rework and Replace Sweetwater Sweetwater RFQ / RFP HEAF Bond $ 40,000 Engineering / Design $ 40,000 Approve Concept MO 07-17(c)
2 Paving on Sweetwater HEAF Bond $ 460,000 Construction Cost $ 460,000 Approve Project and Budget MO 18-19(c) 10%
Campus Total Funds $ 500,000 Total Budget $ 500,000
Sweetwater Fire Loop Sweetwater Sweetwater RFQ / RFP Local Funds $ 788,000 Engineer Design $ 103,000 Approve Concept MO 05-19(c)
Construction Cost $ 540,000 Approve Project and Budget MO 15-19(c)
3 95%
Owners reserve $ 145,000 Accept Project MO 19-20(c)
Total Funds $ 788,000 Total Budget $ 788,000
Abate and Demo Airbase Waco Waco RFQ / RFP Appropriations $ 29,644,640 *A/E Fee $ 814,000 Approve Concept MO 14-19(c)
Buildings on Waco (MP, Demo and Abatement Study, Approve A/E Contract < $1M EA 29-19
Campus Relocation and Renovation Study, and
Site Reclamation Study
*Engineer design Drainage plan $ 25,300 Approve Project and Budget MO 38-19(c)
4 *Environmental Consultant $ 1,250,000 4%
*Survey W,WW, Craven Entrance, Site $ 124,850
*Abate and Demo Contracts TBD
* TBD Construction Cost & Owners $ 27,430,490 Approve Abatement and Demo MO 08-20(c)
53
Total Funds $ 29,644,640 Total Budget $ 29,644,640
Renovate Building 20HI Harlingen Harlingen IDIQ / RFP $ 580,000 A/E Design $ 46,051 Approve Project and Budget MO 17-19(c)
HVAC Lab in Harlingen
5 Local Funds 25%
Construction Cost $ 533,949
Total Funds $ 580,000 Total Budget $ 580,000
Install New Roofs on Waco Waco TIPS Purchasing Insurance Proceeds $ 953,321 Roof Replacement Contract $ 650,000 Approve Project and Budget EA 27-19
Waco Campus Agreement Deductible (none) $ - Solar Panel Remove and Install $ 264,800 Approve Contract > $1 M EA 28-19
6 Electrical Repairs $ 1,519 90%
Owners reserve $ 37,002 Accept Project MO 21-20(c)
Total Funds $ 953,321 Total Budget $ 953,321
Infrastructure Additions Waco Waco Competitive Sealed Auxiliary Funds $ 767,382 Construction Costs $ 767,382 Approve Lease Agreement MO 40-19(c)
7 and Shade Structure Proposal Approve Project and Budget MO 37-19(c) 95%
Battlespace Total $ 767,382 $ 767,382
Fort Bend ITC Welding / Fort Bend Fort Bend CMR Appropriations / Gifts / $ 6,000,000 A/E Design $ 370,000 Approve Project Concept MO 45-19(c)
Diesel and Electrical Line Construction Costs $ 5,200,000 Approve Project, Budget and MO 05-20(c)
8 17%
Worker Technology Owner Costs $ 430,000 Contract > $1M
Total $ 6,000,000 Total Budget $ 6,000,000
Replace Roof and HVAC Harlingen Harlingen Purchasing Appropriations $ 824,000 Construction Costs $ 824,000 Approve Project and Budget MO 46-19(c)
9 Equipment on Building Agreement Accept Project MO 20-20(c) 35%
20SC Total $ 824,000 Total Budget $ 824,000
Expand Welding at ITC Waco Waco IDIQ A/E and RFP for Appropriations $ 976,000 A/E Design $ 75,000 Approve Project and Budget MO 06-20(c)
CMR Construction Costs $ 804,852
10 5%
Owner Cost $ 96,148
Total $ 976,000 Total Budget $ 976,000
Expand Welding at Harlingen Harlingen IDIQ A/E and RFP for Appropriations $ 2,000,000 A/E Design $ 177,000 Approve Concept MO 07-20(c)
Building 200I CMR Construction Budget $ 1,621,000 EA 13-20
11 6%
Owners Cost $ 202,000
Total $ 2,000,000 Total Budget $ 2,000,000
Renovate the West End of Waco Waco CMR Bonds and Appropriations $ 16,300,000 A/E Design $ 1,073,000 Approve Project Concept MO 09-20(c)
Construction Costs $ 14,000,000 Approve Project, Budget and MO 22-20(c)
12 the ITC Building for 1%
offices in Waco Owner Costs $ 1,227,000
Total Funds $ 16,300,000 Total Budget $ 16,300,000You can also read
